Minutes 05/03/1984 - Laserfiche WebLink

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May S, 1984 $18 million for Suffolk 45 million for Norfolk 60 million for Hampton 68 million for Newport News 88 million for Chesapeake 396 million for Virginia Beach It is obvious that the aggressive growth policies that this Council adopted were needed and are defensible. For instance, if we were able to stimulate approximately 3-4% growth each year and maintain consistent increase in existing properties, you could substantially reduce the tax rate. Therefore, greater activities and bold entrepreneurial efforts must continue to be initiated in order to encourage quality growth in our City. Finally, a key to any suc- cessful economic development program is a strong marketing effort and City Council's decision to fund such a program last year, for the first time, must be continued; GENERAL OPERATING FUND In preparation of the budget the Department~;Heads were required to jfistify the cost of all existing as well as proposed programs. With their cooperation requests were greatly re- duced and I commend them to,you for their assistance. As a result, the general operating fund increased 8.05% and the Schoo!-,~oardls operating fund 11.83%. I would like to share with you steps which I feel were instrumental:in a~kieving significant costs reductions. (i) The continued development and strengthening of the Department of General Services. Last year we initiated the consolidation of custodial, building maintenance and garage activities into this one department. This effort has been further refined so as to achieve greater cost savings through centralization and specialization of functions rather than duplicating overhead zn each department. (2) Installation of the Work Management System in the Parks and Recreation Department is nearly complete. The system will save the City more than ~100,000 this fiscal year and every ~a~ thereafter. I am proposing to implement this system into the departments of General Services, Public Works and Public Utilities. (3) During the last eighteen (18) months the following executive ievel positions have been eliminated: Assistant Assistant Assistant Assistant Assistant Assistant Assistant Assistant Assistant City Manager Fire Chief Director, Personnel Director, Planning Director, Public Utilities Director, Inspections City Engineer Purchasing Agent Economic Development Coordinator Twenty-three (23) personnel reductions have been made in comparing the adopted budget of 1984-84 to the proposed budget of 1984-85. Additional savings were achieved through a concerted effort to examine all posit~ons, when vacated, to determine if the duties of those positions could be assumed by someone in the department or accomplished by a lower uaid emplo] In effect, I am asking our employees to do more work with less peoFle, and will contiue with this policy as long as it meets with Council's approval. (4) An Employees Suggestion Program with monetary rewards for adopted s~ggestions that create substantial cost savings, will be implemented on July 1, 1984. TAX RELIEF FOR THE ELDERLY AND DISABLED In an effort to offset rising assessments of properties belonging to Senior Citizens, I recommend to City Council that we increase the income limit for the elderly and disabled fr¢ $8,500 to $10,000 a year. It is estimated that if Council adoptes such a program it would cost an additional $48,000 or a total of $190,000. It is my hope to continue expanding this program each year until we become competitive in the Tidewater area. EMPLOYEE COMPENSATION The budget contains a general wage increase for employees of 5%. As Council is aware I have previoulsy requested that the Director of Personnel conduct a Salary Survey for all of the employees of the City. In cases where current personnel classifications are more than 10! below the prevailing wage ra~e for similar positions in the Survey, I have recommended an additional salary adjustment. The Superintendent of Schools has recommended an increase of $1,500 per school teacher which averages approximately 10%. As I mentioned earlier, we have received unexpected State funds, and in conversations with Dr. Alford we both now recommend that his e~ployees (other than school teachers) should receive a 5% general wage increase instead of the 2~%. Finally, I have also included a 3% increase for retirees. I am sure you recognize the financial problems this group has with respect to inflation and increasing costs to maintain adequate standard of living. Consequently, I feel that this modest increase is warranted.